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It will do nothing, IMHO, to address the primary care physician shortage...because if historical trends of med students' selection of a specialty are anything to go by, most will be allured by prestige, reimbursement and lifestyle into the non-primary care specialties.
As has been mentioned earlier in this thread, the solution does not lie in increasing med school class sizes but in addressing the reasons med students by and large would prefer to avoid primary care ie reimbursement (primarily for internal medicine) and reimbursement + lifestyle/reimbursement comparable to lower-liability specialties (where gen surg is concerned).
I agree 100% that we need to find ways to make primary care more palatable, but I'm guessing we might reach a point where more US grads will go into primary care just because they don't have a choice. If we have more US grads without a comparable increase in residency spots, a smaller percentage of these grads will be able to go into more desired specialties. Since not practicing medicine isn't an option for most people due to debt, these grads will go into primary care, so we'll get more US grads in primary care. And it could be engineered where all or most of the new residency spots (if people agree to add more) are in primary care, and schools continue to grow. So we might get more primary care docs over the long run, but yeah, a lot might be miserable and provide crappy care because they're bitter about being forced to do primary care.